That's because the goods consumers buy from cereal and orange juice to Amazon deliveries of diapers are delivered by trucks, trains or ships that run on diesel. And within the United States, refineries that produce diesel from crude oil are essentially maxed out. Were planting crops and harvesting crops, and the cost of those are going to be higher, but we dont know if we can recoup those costs..

", Most truckers like to think of ourselves as, were serving our country, moving goods around to keep America going, LaBree said.

But at some point," she said, youve got to go to the customer and say, Ive got to increase this rate.' Biden has called on Congress and states to suspend their gasoline or diesel taxes for a few months to help alleviate pain for drivers, but Congress appears unwilling to enact a tax holiday. But they can't easily raise prices, because they often dont control the price of their goods. Brumbaugh declined to say how much she's raised rates on her customers, which range from bottled beverage companies to dishwasher manufacturers. Consumer prices soared 9.1% in June compared with 12 months earlier, the government reported last week.

Sherri Brumbaugh, who runs a fleet of 90 trucks as head of Garner Trucking, has installed more fuel pumps on-site in Findlay, Ohio, because she can obtain diesel more cheaply than her truckers can on the road. If youre a farmer, then your energy costs are higher, and therefore its costing more to produce grain, and thats pushing the price of grain up, and thats pushing the price of food up, said Smith, the analyst at Kpler. Get that and more on some of today's trending topics. She also monitors where her drivers are buying fuel to make sure they're making wise decisions. Also, Emilia Clarke has suffered two brain aneurysms, takeaways from the Uvalde shooting report, and more. A year ago, Fisher was spending $8,000 a week on fuel. NEW YORK (AP) When long-haul trucker Deb LaBree sets out on the road to deliver pharmaceuticals, she has strategies to hold down costs. And she tries to absorb the higher fuel costs herself as much as possible. Farmers also face higher costs. (renews at {{format_dollars}}{{start_price}}{{format_cents}}/month + tax). It breaks my heart because I either have to say, No, I cant afford to, or I can, but youre going to have to pay some of my fuel to get me there,' LaBree said. They used to stay on the road for four days and come home to Missouri for three. UPS and FedEx have more than doubled their fuel surcharges on ground deliveries year-over-year, according to calculations by Cowen Research and AFS Logistics. The fuel oil portion of the consumer price index nearly doubled from the same time last year. Moscow's attack led numerous nations to spurn Russian fuel, removing from the market a major source of oil, the main component of diesel fuel, and driving prices drastically up. One refinery that had served the East Coast closed after an explosion in 2019 and never re-opened. In the meantime, some truckers are struggling to adjust while keeping goods moving. The nation has 11 fewer refineries operating today than before the pandemic, according to the American Petroleum Institute. High diesel prices are driving up the cost of most goods, from groceries to Amazon orders and furniture, as nearly everything that is delivered, whether by truck, rail or ship, uses diesel fuel. . The important thing," she said, "is to make sure that our allies, together with OPEC, dont decrease any flows to the market at any junction, especially if we have some kind of disruption.. This material may not be published, broadcast, rewritten or redistributed without permission. High gasoline prices have eased somewhat in recent weeks. Unless prices ease, the ripple effects of high diesel fuel could worsen because the costs are deterring some truck companies from accepting jobs unless they can persuade their customers to pay more for fuel. Some states temporarily suspended some taxes on diesel and other motor fuels. Lately, she said, theres been less retail freight to haul. AccuWeather forecasters say there are multiple chances for rain in the foreseeable future for the Northeast. governor primary over Hogan's pick, Election of unpopular Sri Lankan PM invites more turmoil, Sunak, Truss in runoff to replace Boris Johnson as UK leader, Late updates: What killed Ivana Trump; Jan. 6 panel subpoenas US agents; and more, A West Virginia woman woke up from a 2-year coma and identified her brother as the attacker, Severe thunderstorm watch for the northeast, Emilia Clarke says parts of her brain are 'missing', and more trending news, Police laud actions of man who killed Indiana mall attacker, Beloved monarch butterflies now listed as 'endangered' by international group, A transformer explodes at Hoover Dam, AOC and other Dems arrested, and more trending news, House overwhelmingly approves a bill to protect same-sex, interracial marriages, Mass shooting at Indiana mall kills 3; Bannon trial to begin; J.Lo, Affleck wed, Trump, Pence rivalry intensifies as they consider 2024 runs, McConnell vows opposition to drug price curbs; House to vote on same-sex marriage; new HR Derby champ, Watch now: Buffalo 5/14 Survivors Fund meeting, New photograph marks Prince Georges ninth birthday, Biden releases message after testing positive for COVID-19, Watch now: Police body-cam footage shows parole officer planting evidence. This year, he said, the figure reached around $20,000. But diesel has remained chronically high, with American refineries operating near capacity. But the driver still has to be paid, and fuel is still burned.

Farmers harvesting hay and planting corn with diesel-fired tractors are absorbing a financial hit. If they're not rejecting jobs, many truckers are choosing lighter loads or working longer hours to make up for money lost on fuel, according to interviews with truckers and industry executives.

One reason why diesel prices haven't yet declined as gasoline has is that OPEC nations have slowed their supply of oil, and Middle East oil typically produces more diesel fuel than, say, parts of Texas do. She organizes her delivery route to minimize deadheading driving an empty truck in between deliveries. The monarch butterfly fluttered a step closer to extinction, as scientists put the iconic orange-and-black insect on the endangered list. But diesel has a more far-reaching impact and is already having a real big impact across the economy.. Today's vote stands as a direct confrontation with the Supreme Court, whose conservative majority in overturning Roe v. Wade abortion access signaled that other rights may be in jeopardy. For months, motorists have felt the pain of high gasoline prices. All rights reserved. We use a lot of diesel, probably more than what these refineries can produce, said Bob Costello, chief economist of the American Trucking Associations. President Joe Biden's visit last week to Saudi Arabia was intended, in part, to encourage OPEC to produce more oil, which would mean more diesel fuel globally. Even more than gasoline, high diesel prices are magnifying the costs of goods because the delivery cost has risen so much. With high diesel prices persisting, LaBree and her husband are working more hours to manage costs. Delivery companies are installing their own fueling pumps to cut costs. Things to know today: 3 dead in Indiana mall shooting, chief says armed bystander kills gunman; Bannon's trial to begin today; Lopez, Affleck wed. Former Vice President Mike Pence is becoming increasingly brazen in his willingness to counter former President Donald Trump. {{start_at_rate}} {{format_dollars}} {{start_price}} {{format_cents}} {{term}}, {{promotional_format_dollars}}{{promotional_price}}{{promotional_format_cents}} {{term}}, High diesel prices are driving up the cost of everything, from groceries to Amazon orders and furniture, This morning's top headlines: Wednesday, July 20, Tops on Elmwood Avenue closes early following threat, New stadium, new experience: More details emerge on Buffalo Bills facility, 16 cars stolen from dealership in Hamburg, Woman who had been reported missing is found dead in Tonawanda, Saying Trump 'lost his mind,' Jacobs urges GOP to choose another nominee in 2024, Company that sold Tops gunman body armor left controversial digital trail, Sabres prospect Lukas Rousek making 'jaws drop' with his passing, playmaking, Inside the NHL: Michael Peca sees the shift in the Sabres' organizational culture and in their talent level, Restringing a flagpole turns into flap over Cheektowaga highway crew on private property, Forced overtime roils the ranks of Erie County jail deputies and officers, Clarence School District budgeting gets knocked in state audit, Sheriff's Office releases name of man who died in crash Friday near Eastern Hills Mall, Alan Pergament: Jhas Williams, Paul Stockman exiting WIVB; McKenzie 'questionable' for next 'AGT', West Seneca developer plans 45-unit apartment project at Flattery's site, Mohammed bin Salman hinted that Saudi Arabia could potentially produce more oil, Trump-backed Cox wins Md. But at what point are we doing it for free? But expecting OPEC to export more oil during high-demand summer months might be unrealistic, said Amy Myers Jaffe, an energy expert at Tufts University. Police said that Wanda Palmer was "attacked, hacked, and left for dead.". But doing so would risk having fewer crops to harvest. The price of diesel fuel has skyrocketed in recent months much more even than regular gasoline especially after Russia invaded Ukraine in February. I hate doing both of those things because its not the customers fault. FILE - A gas tank driver adjusts his hose hookup to an underground tank on May 24, 2022, in Jackson, Miss. Sign up for our newsletter to keep reading. Plus, at least 6 dead in I-90 pileup in Montana dust storm, and scenes from the World Series of Poker final table. I cant run a business that way.. Though no major deal was announced, Prince Mohammed bin Salman hinted that Saudi Arabia could potentially produce more oil. A transformer exploded Tuesday at Hoover Dam, one of the nation's largest hydroelectric facilities. I hope not.. Greenwood Police Chief James Ison said at a news conference today that the actions of the civilian who shot and killed 20-year-old mall shooter Jonathan Sapirman were nothing short of heroic". By comparison, a gallon of regular gasoline is averaging $4.47, up 41% from a year ago. Its not our fault.. Those energy costs are working their way into products, all manner of different consumer products, Smith noted. Copyright 2022 The Associated Press. She turns the job down. You have permission to edit this article. When there's no cargo on a truck, no one pays the trucking company. Many may not know that they're also absorbing the impact of much costlier diesel fuel. Diesel fuel is averaging $5.50 a gallon nationally up a scorching 68% from a year ago, when it was selling for just $3.27. Now, she said, we have to stay out for five sometimes six days to make up for what weve lost from fuel.

And if a customers load is too far away or they cant pay more for fuel? And some refineries in California are closed for retrofitting to process renewable fuel. Americans will find more empty shelves and higher prices.. Everybody I talk to has quite a bit of anxiety over these fuel prices, Fisher said. Things to know today: Partisan lines form over Dems' plan to cut drug prices; House will vote to protect same-sex marriage; HR Derby highlights. Milk and grain prices, for example, are set by the market. Another factor is that China has reduced its diesel exports, presumably to help achieve its net-zero greenhouse gas emissions goals. Those inflated prices are then passed on from company to company until they reach consumers in the form of costlier goods. She avoids the West Coast and the Northeast, where diesel prices are highest.

It may be an indication of a recession, she said. Truckers are turning down hauling jobs in the states with the most expensive diesel. Ultimately, consumers are left bearing the burden. Get up-to-the-minute news sent straight to your device. Keep reading with unlimited digital access. To burn less fuel, he's considered skipping a tillage pass, a maneuver whereby a tractor manipulates soil to enhance crop growth. Sky-high diesel prices squeeze truckers, farmers, consumers. There will be more logistical shortages, said Phil Verleger, a longtime energy economist. When that trailers not loaded and theres no revenue being generated and a mile is run, were eating that, Brown said. Even if American oil and gas producers increase production, tough challenges would remain namely, finding additional refinery space and then enough pipeline capacity to transport any additional diesel. Cargo Transporters, which runs 470 trucks and 1,800 trailers, raised its rates, too, and has been turning down some jobs to Florida, where trucks often must return without a load, said Shawn Brown, a company executive. People pay less attention to diesel prices because people arent going to the pump and using it, said Matt Smith, lead oil analyst at Kpler, a research firm. Its costing us more for freight to get things delivered to the farm, and its costing more to haul things away, said David Fisher, a dairy farmer in Madrid, New York, who is president of the New York Farm Bureau, which lobbies governments on behalf of farmers.
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